The Institute for Energy Security (IES), has predicted a further drop in refined oil prices on the local market, indicating that there are enough factors to push the price down in the second half of the month.
“To the point where competition among the oil marketing companies remains high, market price for both Brent crude and refined oil dropping in average price terms, added to the appreciation of the Cedi against the U.S. dollar, and increasing national fuel stock; the Institute for Energy Security (IES) believes that there is enough positive momentum and fundamental justification to move the prices of petrol and diesel lower on the local market,” says the institute.
The downward price projection was the conclusion of report on market analysis conducted by the IES, an energy sector think-tank, on the second pricing window for August 2016.
Regarding the local fuel market, the report noted that during the first Pricing-window for the month of August 2016, diesel and petrol prices on the local market recorded an average fall of 1.33 per cent and 1.28 per cent respectively; as aggressive competition among the oil marketing companies (OMCs), tied to massive draw-down of old stocks held by the Bulk Distribution Companies (BDCs) outweighed the low fuel stockpile in the country.
On the IES top-10 chart, Radiance Oil, Allied Oil, GOIL, Frimps Oil, and Star Oil occupy the first five positions in terms of the cheapest diesel prices on the local market. For petrol prices, Radiance Oil, Allied Oil, Goil, Puma Energy, and Glory comes first. The market also recorded shortages of Liquefied Petroleum Gas (LPG) across the country, as predicted by IES, said the report signed by Gilbert Richmond Rockson, Principal Research Analyst of IES.
With regard to world petroleum market index over the period, it observed that price of Brent Crude rose by approximately 8.73per cent as a result of falling U.S. refinery and production output, speculation of production cap by the Organisation of Petroleum Exporting Countries (OPEC), and geopolitical risk in Nigeria, Venezuela, and Libya. However, in terms of average prices, the first Pricing-window for August recorded a drop of 78 Cents over the previous.
Platts, the benchmark for refined petroleum products recorded a drop from $393.84metric tonnes to $369.50/metric tonnes, representing a change of 6.18 per cent for diesel. In similar fashion, the average Platts price for petrol on the world market dropped by $14.79/metric tonnes representing 3.25 per cent.
In addition, the report noted that data from the Bank of Ghana indicated that the cedi held up against the U.S. dollar over the period, recording a minimal appreciation of 0.09 per cent.
“Over the first pricing-window, the country’s stock for diesel and petrol combined increase from 407 million liters to 479 million liters; capable of meeting just above six and a half week of national fuel security, using June 2016 national fuel (petrol and diesel) consumption as basis,” it observed.
By Times Reporter